As the German economy was affected by Versailles
How was the German war effort paid during the great war?
It can be said that the effort of the German war was paid with humiliation, and undermined all the war effort. During the war there were thousands of deaths and the economy was destabilized;The country had many losses and the war effort ended up being in vain since it is said that it was not recognized. Apart from Germany had to face the natural conflicts facing countries after a war, they were victims of a series of points imposed by other countries in the Versailles treaty. Since the time of the war, the country had higher prices for consumer goods due to military expenses. Likewise, to cover war costs, taxes were increased creating a weakness in the economy .
Despite the debts which already made all the effort of war be unsuccessful, they should also take responsibility for everything that had happened in the war creating a feeling of humiliation so that people did not agree with the exaggerated impact impacts imposedFor the Versailles Treaty. This is why it is said that the people who signed the treaty undermined the war effort so the war ended up being totally counterproductive to Germany;It was paid with much more than they lost and much more than they caused. It was paid with a reduction in the German population of almost 10%, the reduction of the territory by 13%, was paid with a debt of around 33 billion dollars, with a restriction of 100,000 men in their army, with theProhibition of manufacturing land, aerial and sailor vehicles and with the limitation of weapons (The Editors of Encyclopaedia Britannica, 2020). Basically, it could be said that the war effort was completely in vain since it was paid with limitations and absurd barriers by other countries;points that had to accept because the German government was between the sword and the wall before the allies.
How did the Versailles treaty affected the German economy?
The Versailles treaty affected the German economy in many ways, even caused hyperinflation which contributed to the fall of the Weimar Republic, which can be said that it mounted the Nazis to power. First, Germany had to pay around 6.6 billion pounds only in repairs. Although the amount of money that this country had to pay to the allies was an unthinkable sum, the economy was affected by many other factors. The loss of land described by the treaty caused the country to lose industrial centers of the utmost importance, factories, prime materials and resources. Germany had to deliver 13% of its lands and with it its percentages of the total production values were reduced. This reduction occurred in products such as coal, iron, minerals, among others;negatively affecting the industry, which depended mostly on foreign sources. Likewise, agriculture and food supplies sources were affected since there was a great decrease in internal production, which caused the need for more imports.
Apart from all these losses, the Government had to start depending on the Tax on Commerce and Property and the Profit of Public Services. All this economic recession was negatively affected by the protective rates of the products in the country. That is, if they could have sold their assets in other countries, it would have been easier. Apart from the unemployment increased by 23%, the government decided to print money to pay its debts. Because there was a shortage of goods produced internally, this led to rapid hyperinflation, devaluing the currency in its path. Without money to pay the "agreed" in the treaty, and with the occurrence of the great depression, the government did not have to invest in its own economy so they did not have many possibilities to address this event.
As in the beginning, the effects that Versailles’s treaty had in front of the German economy were factors which "contributed" to the fall of the Weimar Republic, contributing to the Nazis’s rise in Hitler.
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